British economy: Brexit

In this article, I will give a short summery (and my opinion about the subject) of the reportage that has been made by Terzake, a program on Belgian television. The subject of the reportage is about the Brexit and the economy of UK.

Summary

In the reportage there’s an interview with the British Minister of Finance. He says that the economy of the country is doing well and there are no problems for the future, the minister is just waiting on 31st October (UK leaves EU). While he says that the reporter told him that he was lying because the UK’s economy is absolutely not doing well, there is a decrease of 0.2% in gross domestic product. What can cause a recession.

Recession= a period when the economy of a country is not successful and conditions for business are bad. Some consequences of a recession are unemployment, drop in consumer spending, affecting businesses, … All this happens when a country has 2 or more quarters of negative gross domestic product (GDP) growth.

Bad times are coming

The UK are now in the first negative quarter, but economist predict that bad times still have to come for the country. A few people think these negative quarters are the result of company’s who had a big stock that they filled up in the quarters before. But now the stock needs to be used so nobody is filling up there stock anymore. The biggest victims are chemical industries, car manufacturers and metallurgical industry.

Professor London School of Economics

In the second interview is with Professor London School of Economics, he says that the minister thinks there are no problems in the economy. “Off course there are problems” is his reaction, while the minister thinks that there are no problems is the chances of a No Deal Brexit getting bigger and bigger.

When these bad times continue, for the British people there are a few problems: on short time it would be possible that some products can have a shortage in the UK. On long time some countries don’t want to trade with the UK because the costs would be to high and this can lead to unemployment.

Bad times for the EU

There are a lot of bad things happening in the EU: first there is the business war between China and USA that can have a big impact. Second is the bad productions in Germany, and third is the (almost) recession of UK. These three facts cause a slower growth in Europe, what’s not good for the citizens.

 

Earlier Brexit

First of all I think the Brexit had to be done earlier, EU don’t need to have sympathy with the UK because all these problems were caused by themselves. The recession is the first sign of the people for intelligibility, because nobody things this can lead to a good deal. They are already saying more than 3 years that they would leave the EU, but three years later they are still in it. During these years, people are fearing for their job. If the UK speeded up on their deal, only the people in the UK felt it a little bid but after 5 years the things would go like it never happened. Now I’m 100% convinced that the country would be in a recession or just in the border of it.

I absolutely agree what the professor says, UK don’t realize that there are problems. Unemployment is something that nobody wants in bad times of a country. Everybody knows that you need the count every penny and can’t enjoy something with your family. Now the UK is in a moment that it needs help from other countries but I don’t think EU wants to help them so they are looking at the USA but they are to busy with China. Further I think the UK will get out of the EU and it would take a long time to recover of it.

Sources

 

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